In a follow-up regarding the city's capitol projects director, FOX 8 has learned Bill Chrisman was fired. He did not resign.
Chrisman, in a statement to FOX 8 Friday, questioned the morals and ethics of some members of Mayor Ray Nagin's administration, especially when it comes to how the city uses the state revolver fund for capital projects. Now, at least one council member says there is legitimate concern.
In the internal city hall memos dated last month that FOX 8 has obtained, Chrisman, now the former capital projects director explained he and his staff were being "pressured and intimidated into approving funding for which their reservations were ignored." That memo was sent to New Orleans' Chief Administrative Officer, Brenda Hatfield.
Chrisman expressed concern about use of the state's revolver fund, a fund that allows the city an advance on money for projects ultimately reimbursed by FEMA.
In one memo Chrisman wrote Hatfield, "currently sufficient funding exists for project construction until September." However, Chrisman said, "the dollar value of some contracts will dramatically impact the remaining dollars.. and the fund will now be depleted by mid March."
Councilwoman Shelley Midura told FOX 8 there's a legitimate concern about how the state fund is being used. "Before you go incur a cost, the project worksheet has to be basically agreed to with FEMA, and let's say you come to an agreement it's (project) going to cost $10 million. Then you can go spend the money on the project," said Midura.
If there's no project worksheet with FEMA, basically no agreement with FEMA on a figure, Midura said the city takes a big risk. The revolver fund may not get reimbursed. "That means you've drawn down from the revolver, which decreases the total amount of money that the city has available to front for projects over time, and if we have depleted it by March or April, what are we gonna do to front the projects that are way back in the pipeline?" asked Midura.
Chrisman's memo expressed concern about a couple of professional services projects. The value of a contract with Hagerty Consulting for example was $298,000 in 2008. Chrisman's memo said the dollar value jumped to $2.3 million. "An 800-percent increase from the original contract value while essentially performing the same services," according to Chrisman.
Midura said if that is the case, "it's alarming."
A couple of contracts that have increased dramatically in value may not have FEMA project worksheets, which means the city risks not being reimbursed.
According to internal memos, Harrison Boyd, another top Nagin administrator, sent a memo to CAO Hatfield, requesting that Chrisman be removed from the process of approving capitol projects. That was just a couple of weeks before Chrisman was fired.
Midura told FOX 8 the city council could soon take up an ordinance from the administration detailing the increase in value for a couple of contracts.
James Ross, a city spokesman, sent FOX 8 the following email late Saturday:
"The City of New Orleans does not comment specifically on personnel matters. Mr. Chrisman's issues extended far beyond invoices, and it was in everyone best interest that we parted ways. All it relates to invoices -- all invoices must pass FEMA muster and so far, they have. However, without funding for project management and with FEMA announcing it is temporarily out of money for recovery projects, Mr. Chrisman's services were no longer needed. We wish him well in his future endeavors and will continue our efforts toward the historic rebuilding of New Orleans."
